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Glossary
Electricity labeling

Electricity labeling informs consumers about the origin and environmental impact of their electricity. In Austria, it plays a key role in ensuring transparency in the energy market and promotes renewable energies.

10/23/2024

Electricity labeling is an important instrument for promoting transparency and environmental awareness in the energy market. It provides consumers with information on the origin of the electricity they purchase and provides information on the composition of the energy sources from which the electricity is generated. In Austria, electricity labeling is regulated by law and monitored by Energie-Control Austria (E-Control).

A central aspect of electricity labeling is the precise listing of the energy sources used. These include both renewable and fossil energy sources. In this way, consumers can see what percentage of their electricity comes from sources such as hydropower, wind energy, solar energy or biomass. At the same time, they receive information on the proportion of conventional energy sources such as coal, natural gas or nuclear energy. This transparency helps consumers to make informed decisions and promotes awareness of sustainable energy sources.

In Austria, energy suppliers are obliged to provide their customers with a label for the electricity supplied once a year. This label not only contains the percentage composition of the energy sources, but also information on CO2 emissions and other environmental impacts. Mandatory labelling allows consumers to compare their electricity suppliers and make informed choices that can minimize their environmental impact.

Another advantage of electricity labeling is that it promotes competition in the energy market. Suppliers that have a high proportion of renewable energy in their portfolio can stand out from the competition. This creates incentives for companies to invest in sustainable energy sources and increase their share of the energy mix. In an increasingly environmentally conscious market, consumers are often willing to pay a higher price for environmentally friendly electricity.

Electricity labeling also has an impact on the market strategy of suppliers. Companies that offer their customers a high level of transparency and offer environmentally friendly alternatives can position themselves as pioneers in the energy transition. At the same time, suppliers that rely on fossil fuels can be disadvantaged in their market position by the labeling.

At European level, the regulations on electricity labeling are set out in EU Directive 2009/28/EC, which creates a uniform framework for all member states. This directive aims to increase the share of renewable energy in total consumption and promote energy efficiency. The national implementation of this directive in Austria is closely linked to the goals of the energy transition, which aims to reduce CO2 emissions and reduce dependence on fossil fuels.

A particularly interesting example of the effect of electricity labeling is the increasing demand for "green electricity" in Austria. Many consumers are consciously opting for suppliers that offer a high level of transparency regarding their energy sources. This development shows that electricity labeling is not only an informative tool, but also acts as a catalyst for change towards more sustainable energy solutions.

In summary, it can be said that electricity label ing plays a crucial role in the Austrian and European energy market. It promotes transparency, informs consumers about the origin of their electricity and supports the energy transition by incentivizing the use of renewable energy. The legal obligation to label gives consumers the opportunity to make informed decisions and choose the energy supplier that best suits their environmental and sustainability goals.

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